Finally something super interesting!
A statistical model identifies of the distribution from which your data is drawn.
- MAB algorithms builds up statistical models for each arm
For example, if we look at a data sample, and see that it looks like it follows a Normal Distribution, our our statistical model is , but with unknown.
- Attributes of the population that you are interested in are typically the parameters of your model
- Finding a model is an empirical question, not theoretical
Once we can identify some sort of statistical model for our data, the goal is to estimate the parameters of this statistical model. This process is called Estimation.